At the moment, the debt-to-equity of Cardinal Health, Inc. (NYSE:CAH) is high, standing at 148.75, a figure that is higher than the 21.57 average recorded by the industry. This means that the company is currently holding a debt level at 9.00 B. CAH shares have a strong debt-to-equity ratio but their quick ratio which reads 0.50 is strong and might cause problems for them later in the future.
Even though there was a rise of +7.88% in revenue, the company failed to succeed in outperforming the industry average of 5.66%. For the most recent quarter, the net income has jumped by +415.65%. This strength in their income has affected them and thus increased their earnings to $624.00 M. The 7.88% yoy growth of CAH’s revenue has gone up that of the industry average by 1.14%. For the past 12 months, Cardinal Health, Inc. revenue has gone up by 6.74%. The sustained growth in their revenue has helped boost their earnings per share.
Cardinal Health, Inc. (CAH) has seen their earnings per share increased to $1.94 during the last quarter in comparison to the same quarter last year. They have recorded a 151.52% growing earnings per share earnings. They have recorded a 151.52% growing earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $1.08. In the fiscal year 2018, Cardinal Health, Inc. overcame its bottom line by hitting earning $0.81 per share compared to the $4.03 in 2017.
The 12-month return on equity has significantly fallen to -2.56 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Services sector, the industry average is 11.89 while 60.82 is of the sector.
CAH total operating cash flow had dropped to $365 million compared to $554 million in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 18.23 ratio of the stock is higher than the industry’s 14.18.
In addition to their unfavorable P/E ratio, Cardinal Health, Inc. has maintained a gross margin of 5.15. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is -0.39 when compared to 5.66 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, Cardinal Health, Inc. ROE is above 60.82 that of both the sector average.
The operating profit margin for Cardinal Health, Inc. (CAH) is 0.49%, a figure which is considered to be weak. It has gone 3.35 from the 1.49 over the past 5 years. In addition to this, their operating margin is -2.86 lower than the industry average.
The net profit margin which stood at 0.77 on average in the past 5 years has dropped to -0.11 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 2.33.
Analysts meanwhile rate Cardinal Health, Inc. (NYSE:CAH) as a buy. Still some above discussed indicators of the $14.23B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the CAH shares to either perform positively or negatively when compared to other stocks. The primary strengths of Cardinal Health, Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.